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HedgeFundLIVE.com — This story seems to never
end. I’m sitting at home on Wednesday night enjoying my
evening when I receive a phone call alerting me to the fact that
Goldman is in trouble again. Specifically, Michigan
Democratic Senator Carl Levin of “Shitty Shitty Shitty” fame,
newly emboldened by the completion of his two year bipartisan
investigation into the financial crisis, is on the verge of
refering Goldman officials and possibly officials from other
firms to the DOJ for possible prosecution and to the SEC for
possible civil proceedings. From one of the articles
covering the story:

The chairman of the U.S. Senate’s investigative subcommittee
said he believes Goldman Sachs officials made misleading
statements about their trading during the financial crisis and
should be investigated criminally.

Sen. Carl Levin (D-Mich.) said on Wednesday that he plans to
refer Goldman officials, and potentially officials from other
organizations, to the Justice Department for possible prosecution
and to the Securities and Exchange Commission for possible civil
proceedings.

“In my judgment, Goldman clearly misled their clients and
they misled the Congress,” said Levin, the chairman of the Senate
Permanent Subcommittee on Investigations.

Levin’s statement came after a two-year, bipartisan
investigation by his subcommittee. In one widely covered hearing
in April 2010, as part of the investigation, senators sparred
with Goldman officials over a mortgage-related product that a
Goldman executive had referred to in an e-mail as a “shitty
deal.”

Now, you may be thinking, “didn’t this already happen…?”
Well, sort of. It was about one year ago,
that Mary Shapiro and her band of merry regulators filed the
Abacus complaint against Goldman and the fabulous Fabrice Tourre
which was followed shortly by the Senate hearings where Sen. Carl
Levin uttered his now famously desciptive adjective when
referring to the “shitty deal” done by GS. Within a few
short days after that very hearing, the DOJ announced that
it had opened a probe into Goldman, which, according to the
Manhattan US Attorney’s office, by that point had been
going on for weeks. The announcement of the DOJ
criminal probe took GS stock down by around 9.4% or $15 per share
that day… OUCH!